In the wake of the housing crisis and economic downturn, many people are in need of mortgage assistance. And one of the best ways to help financially strapped, underwater homeowners may be through a mortgage loan principal reduction. By curbing mortgage debt and lowering monthly payments, homeowners are able to stay in their homes and breathe a bit easier. Principal reduction is an important component of the mortgage assistance offered through the Hardest Hit Fund , which provides $7.6 billion to Housing Finance Agencies in 18states and the District of Columbia to establish programs to help homeowners with their mortgage payments and avoid foreclosure. The U.S. Department of the Treasury committed almost $2 billion in Hardest Hit funding for Keep Your Home California , administered by the California Housing Finance Agency. Four programs were established, each with specific goals and requirements, to help homeowners who have suffered a financial hardship through no fault of their own, such as a job loss, cut in pay, divorce or extraordinary medical expenses in the Golden State. One of California's programs allows out-of-work homeowners collecting jobless benefits to have their mortgage payments covered, as much as $3,000 per month for up to nine months while they look for work. Another program has provided homeowners with an average of $13,000 to "catch up" on their mortgage payments to avoid foreclosure. For homeowners who undergo a short sale or deed-in-lieu of foreclosure, a transition assistance program helps initiate a graceful exit from the home. And because nearly 30 percent of all homeowners in California are underwater on their mortgage, meaning they owe more on their mortgage than the current value of their home, the Principal Reduction Program has been one of the most significant foundations of the four Keep Your Home California programs. With the Principal Reduction Program, eligible homeowners - those who meet low or moderate area income limits...

With Europe locked in a multi-billion-dollar game of chicken with Cyprus, markets Friday were watching closely to see which side would blink first.

Cyprus' finance minister is returning to Cyprus from Russia after two days of talks with officials which failed to deliver a deal to rescue Cyprus.